Today’s Stock Exchanges, December 27th. Chinese reopening boosts stocks and oil. But Wall Street is heading towards a dark year


Today’s Stock Exchanges, December 27th.  Chinese reopening boosts stocks and oil.  But Wall Street is heading towards a dark year
Written by aquitodovale

MILAN – The Chinese easing of restrictive measures to contain Covid infections marks the reopening of trading on the financial markets, after the long bridge over Christmas. In a climate that is nonetheless festive, even oil is benefiting from the prospect of fewer restrictions by Beijing on the movement of people and therefore on trade and economic activity in general. Despite the number of infections giving rise to concern, the Chinese authorities will lift the quarantine obligations from 8 January for those arriving from abroad: it will be sufficient to show a negative test within 48 hours of departure. Quite a leap from the 8 day quarantine (including 5 in designated Covid hotels) which is the current route. The reaction of the markets is quite understandable: shares on the rise between China, Tokyo and Seoul with the travel and consumer goods sector improving. And oil, historically linked to general economic prospects, is also rising.

This does not take away much from Wall Street’s probable negative record: the American stock market begins in the name of weakness in the last week of 2022, destined to close in the red after three consecutive upward years. Barring miracles, it will be the worst year for US stocks since the terrible 2008 of subprime mortgages. Even Europe slows down after the opening of Wall Street.

Europe slows down with Wall Street

The reversal of Wall Street, which slipped into red after a positive start to the day, is holding back European stock lists. Milan (-0.2%) and Amsterdam (-0.14%) have moved into negative territory, while Frankfurt (+0.26%), London (+0.05%) are holding on above parity, even if their gains are reduced ) and Paris (+0.66%). Among the main Milanese stocks, at the bottom of the list are Nexi (-1.27%), Stmicroelectronics (-1.47%) and Erg (-1.82%).

The US deficit is lower than expected

The US trade deficit fell more than expected in November. The red settled at 83.35 billion dollars, against the 96.90 billion expected and the 98.80 billion recorded in October.

EU stock exchanges ahead positive

European stocks are proceeding positive, supported by the easing of anti-Covid restrictions in China. Paris gains 0.99% to 6,569.31 points, Frankfurt 0.77% to 14,048.45 points, Madrid 0.41% to 8,303.00. Milan rises by 0.40% to 23,971.00 points. The square in London is closed for public holidays.

Gas down, oil up

The price of gas in Europe continues to fall and remains at its lowest level since Russia launched its invasion of Ukraine on February 24th. At the TTF reference hub, the January contract drops to 82 euros per megawatt hour (-1.06%).

On the other hand, oil prices continue to rise on their three-week highs thanks to the latest easing of Covid restrictions in China which raises hopes for fuel demand. Concerns that winter storms in the United States are affecting energy production also weigh. WTI rose 1.18% to 80.50 dollars a barrel, while Brent rose 0.85% to 84.63 dollars a barrel.

Mps positive on the stock market after ECB indications

MPS opens the stock market up (+1.5%) after the confirmation of the capital requirements by the ECB and the indication that, following the 2.5 billion capital increase, the absolute ban on dividends will be lifted.

Gas opens down, the lowest since the beginning of the war

Gas prices in Europe open lower and remain at their lowest since Russia launched its invasion of Ukraine on February 24th. At the TTF reference hub, the January contract drops to 82.50 euros per megawatt hour (-0.57%).

The EU Stock Exchanges open positive, London closed

European stock exchanges, with the exception of London which is closed for holidays, open higher with attention paid to China, which has eased anti-Covid measures. Paris gains 1% to 6,571.40 points, Frankfurt 0.82% to 14,055.50 points, Madrid 0.71% to 8,327.50 points; Milan opens at +0.62%. On January 8, Beijing will end mandatory quarantines upon arrival in the country, the last remnant of the strict “zero Covid” health policy that has isolated the country for almost three years. The Health Commission, which acts as a ministry, said it no longer considers Covid-19 a “pneumonia” but a less dangerous “contagious” disease, which no longer justifies quarantines. He also spoke of gradually restoring overseas travel for the Chinese but did not provide a timetable. The session is expected to have little movement, without important economic indicators and with a reduced presence of investors: however, the decline in trading could lead to greater volatility.

Positive Chinese stock exchanges on reopenings

Chinese stock markets are on the rise: today the country has taken an important step to reopen its economy to the rest of the world. Hong Kong markets remain closed for the Christmas holidays. In Shanghai, the composite index rose by 0.94%, while the Shenzhen composite index rose by 1.12%. South Korea’s Kospi was also positive with +0.54%.

Tokyo closes up slightly (+0.16%), unemployment improves

The Tokyo Stock Exchange closed slightly higher, trading in a tight range on no new leads during the winter holidays. The benchmark Nikkei 225 index rose 0.16% to 26,447.87, while the Topix gained 0.40% to 1,910.15 points. In November, the unemployment rate in Japan stood at 2.5%, a decrease of 0.1% compared to October, the first improvement in the last three months.

Positive futures on the EU and the US

A higher opening is expected for the European stock exchanges in a day with reduced trading, with London closed for the Christmas holidays. Futures on the Euro Stoxx rose by 0.57% and those on the Frankfurt Dax rose by 0.56%. Wall Street futures also travel in
rise pending US data on the trade balance of goods in November and the Shiller index of house prices in October. The Dow Jones gains 0.52%, the Nasdaq rises 0.80% and the S&P 500 rises 0.65%

Oil rises with Chinese reopenings

Oil prices on the rise this morning on the commodity markets: the Wti barrel for delivery in February is trading at 80.25 dollars with an increase of 0.87% while the Brent for delivery in February changes hands at 84.65 dollars per barrel with an increase of 0.87%.

The euro appreciates against the dollar

Euro up slightly this morning on the currency markets: the single European currency is traded at 1.0664 dollars with an increase of 0.25% and at 141.5900 yen with a growth of 0.17%.

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